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Bank Z pays 4 percent interest, compounded monthly, on its long-term deposits. Bank A pays 4 percent interest, compounded quarterly, on its savings accounts. You want to deposit sufficient funds today so that you will have $2,400 in your account 3 years from today. The amount you must deposit today:
A.is the same regardless of which bank you choose because they both pay compound interest.
B.is the same regardless of which bank you choose because they both pay 4 percent interest.
C.is the same regardless of which bank you choose because they both pay simple interest.
D.will be greater if you invest with Bank A.
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